(HAR Newsroom, September 11, 2024) — As the summer temperatures climbed in August, Houston’s housing market experienced a cooldown. The slower sales volume enabled inventory to expand and prices to moderate, creating a positive landscape for home buyers.
According to the Houston Association of Realtors’ (HAR) August 2024 Market Update, single-family home sales across the Greater Houston area declined 8.3 percent year-over-year. The HAR Multiple Listing Service (MLS) recorded sales of 7,340 units compared to 8,006 last August. Inventory expanded from a 3.2-months supply to 4.5 months, which is the highest since September 2012.
The luxury segment ($1 million+), which represents 4.1 percent of all home sales in August, had the strongest performance, with a 2.0 percent increase in sales. All other housing segments experienced slower sales in August. Homes priced between $100,000 and $149,000 saw the biggest decline, with closings down 13.2 percent year-over-year. That segment made up just 2.2 percent of the overall market.
The average price of a single-family home edged up by 0.9 percent to $421,912 while the median price declined slightly, 0.3 percent, to $336,940.
“Although sales have slowed, the Houston housing market is still in good shape,” said HAR Chair Thomas Mouton with Century 21 Exclusive Properties. “Expanding inventory and easing mortgage rates are offering buyers more opportunities. A potential Fed rate cut later this month could further boost consumer confidence and home sales.”
HAR will publish its August 2024 Rental Home Update on Wednesday, September 18.
August Monthly Market Comparison
August marked the fourth consecutive month where total property sales declined year-over-year. Sales were down 11.2 percent compared to the same time last year. Total dollar volume fell 8.8 percent to $3.5 billion. Active listings, or the total number of available properties, were 29.3 percent above where they were in August 2023.
Single-Family Homes Update
In August, single-family home sales were down 8.3 percent
year-over-year with a total of 7,340 units sold across the Greater Houston area
compared to 8,006 last August. The average price rose 0.9 percent to $421,912
while the median price declined slightly to $336,940. The price per square foot
declined from $177 last year to $176.
More homes are continuing to hit the market, with active listings up 34.6 percent year-over-year. There were 30,841 single-family homes available in August, which is the highest since July 2011 when there were 32,096 active listings. Days on Market, or the actual time it took to sell a home, was up from 43 to 47 days.
Months of inventory of single-family homes expanded from a 3.2-months supply last August to 4.5 months—the most plentiful supply of homes since September 2012 when there was a 4.7-months supply. Housing inventory nationally stands at a 4.0-months supply, according to the latest report from the National Association of Realtors (NAR). A 4.0- to 6.0-months supply is generally considered a “balanced market” in which neither buyer nor seller has an advantage.
Broken out by housing segment, August sales performed as follows:
- $1 - $99,999: decreased 4.7 percent
- $100,000 - $149,999: decreased 13.2 percent
- $150,000 - $249,999: decreased 11.6 percent
- $250,000 - $499,999: decreased 6.5 percent
- $500,000 - $999,999: decreased 11.4 percent
- $1M and above: increased 2.0 percent
HAR also breaks out sales figures for existing single-family homes. In August, existing home sales totaled 5,305, which is down 13.1 percent compared to the same time last year. The average price rose 2.7 percent to $428,583, and the median sales price edged up 1.4 percent to $334,500.
Townhouse/Condominium Update
August saw a further decline in townhome and condominium sales, with sales dropping 16.7 percent to 475 units. The average price declined 1.2 percent to $258,952 while the median price was statistically flat at $226,000.
The inventory of townhomes and condominiums expanded from a 3.1-months supply in August 2023 to 5.5 months, which is the highest since August 2012 when it was 5.6 months.
Houston Real Estate Highlights in August
- Single-family home sales declined 8.3 percent year-over-year;
- Days on Market (DOM) for single-family homes went from 43 to 47 days;
- Total property sales were down 11.2 percent with 8,730 units sold;
- Total dollar volume declined 8.8 percent to $3.5 billion;
- The single-family median price was down 0.3 percent to $336,940;
- The single-family average price rose 0.9 percent to $421,912;
- Single-family home months of inventory registered a 4.5-months supply, up from 3.2 months last August;
- Townhome/condominium sales continued to decline, falling 16.7 percent, with the median price statistically flat at $226,000 and the average price declined 1.2 percent to $258,952.